We present the results of our corporate market report, analyzing the dynamics of the office market in Bogotá for the first quarter of 2022.
This report presents a positive outlook for recovery, stating that absorption is expected to recover gradually and that the city’s commercialization levels will begin to improve by 2022, driven by the favorable market dynamism.
The office market report for the first quarter of 2022 revealed several key aspects of the sector, including:
At the close of the first quarter of 2022, Bogotá had a cumulative office inventory of 2,373,362 square meters, growing by 0.1% compared to the previous year’s closing figures (2,370,189 square meters). A growth of 8.7% (228,608 square meters) is anticipated for the inventory by 2024.
The first quarter of 2022 began with a net cumulative absorption of 15,182 square meters. The average monthly absorption rate during the quarter was 5,060 square meters, representing a 37% increase compared to the same period in 2021.
The available office space in Bogotá at the beginning of 2022 was 188,606 square meters (an increase of 57,044 square meters compared to the previous quarter). Office vacancy in Bogotá closed at 362,481 square meters, remaining stable at 15% compared to the fourth quarter of 2021. Overall, vacancy + available space amounted to 551,087 square meters, 53,523 square meters more than the previous quarter’s closing figures.
The rotation indicator remains high at an average of 69.8 months for the quarter, indicating an increase of 8.3 months compared to the previous quarter and 7.5 months more than the same quarter in 2021.
The corporate market in Bogotá started 2022 with a negotiation price range between an Asking Price of $59,300 per square meter (increasing by 1% per square meter compared to the previous quarter and 1.7% below the 2020 closing figures) and a Closing Price of $51,750 per square meter, decreasing by 2.9% compared to the previous year’s closing figures, showing a slight increase in rental prices.
“In general, what we are seeing is a recovery in prices, primarily driven by the positive dynamism shown at the end of last year, which is undergoing a recovery process and an increase in prices for Class A and Class B properties,” commented Gustavo de la Torre, LATAM Real Estate Director at MTS Consulting + Management.
MTS Consulting + Management
